Japan’s economy shrinks 12.1 percent on exports

Tokyo, March 12 (DPA) Japan’s economy shrunk an annualised 12.1 percent in the final quarter of 2008, according to revised statistics released Thursday by the Japanese government. Initial figures had projected a 12.7-percent contraction for the gross domestic product (GDP).

Nonetheless, in light of an unprecedented drop in exports, Japan’s economy has shrunk the most since the oil crisis 35 years ago.

According to the revised figures released by the Cabinet Office, GDP in the third quarter of 2008 shrank 3.2 percent instead of the 3.4 percent initially projected.

The economic decline in the world’s second-largest economy is the worst since the end of World War II. Economists said the export-dependent country would only recover when demand from its biggest customers in the US and China recovers.

Japan’s exports dropped 46.3 percent in January, and the country suffered its first current account deficit in 13 years.